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Visual Quant & Low-Latency Systems Lab
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Curriculum/meta-labelling

Meta-Labelling

research process·L2 · idiom·stub
Replacesthe belief that one ML model should predict both direction and confidence.

Meta-labelling (López de Prado, AFML ch. 3) splits the prediction into two models: the primary model predicts direction (long / short / pass); the secondary model predicts whether to take the trade. Each model sees a different subset of features and labels. Precision-recall trade-offs improve at every operating point; false positives drop without sacrificing recall on confident trades.

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Bridges
  • primary-vs-secondary-model-decompositionmodel to implementation
    The two-model split generalises to risk control (primary picks direction, secondary picks size) and to ensemble methods (primary is the base learner, secondary is the gate). The pattern is decomposition by *decision type*, not feature subset.
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Author at: content/concepts/meta-labelling/card.ts